Stubborn India deny Australia

India reached tea at the SCG with eight wickets still in hand as captain Virat Kohli (46) and Murali Vijay (80) seemed well placed to ease the tourists home.

But, the hosts picked up momentum in Saturday's final session, claiming five wickets - Mitchell Starc (2-36) and Josh Hazlewood (2-31) doing much of the damage - to send nerves jangling through the Indian dressing room.

Ajinkya Rahane and Bhuvneshwar Kumar proved stiff opposition, however, and their stand of almost 12 overs prevented a repeat of the collapse which had seen them surrender the first Test in Adelaide.

Australia came into the contest having already wrapped up the series 2-0 after winning the two opening contests, with attentions now firmly switched on the 50-over format as England join the two sides for a tri-series ahead of the Cricket World Cup.

Steve Smith opted to declare overnight, handing the tourists a target of 349 for victory.

Nathan Lyon (2-110) grabbed the breakthrough in the 14th over, Lokesh Rahul edging the spinner to Dave Warner at short leg, but frustration ruled and it was not until after lunch that a second batsmen fell, captain Smith pulling off a stunning catch at slip off Shane Watson's bowling to send Rohit Sharma (39) back to the pavilion.

Opener Vijay was in stubborn form, but his dismissal - nicking Hazlewood to wicketkeeper Brad Haddin - three overs after tea sparked a worrying collapse for the Indians.

Captain Kohli followed suit six overs later when Watson held onto a catch off a delivery from Starc, with Suresh Raina following soon after lbw - sealing his pair in the match.

Wriddhiman Saha (0) was next to go, followed by Ravi Ashwin (1) with 11 overs remaining to raise hopes of a stunning success for the hosts.

But Rahane and Kumar steered India to stumps with three wickets still intact, lifting morale somewhat ahead of their 50-over contests.